+
Discom debt surges 24% to Rs 6.2 lakh crore in 2021-22
POWER & RENEWABLE ENERGY

Discom debt surges 24% to Rs 6.2 lakh crore in 2021-22

The total debt of India's power distribution sector increased by 24% from 2019-20 to 6.20 lakh crore in 2021-22. However, the rate of debt addition has slowed over the last two years, according to Power Finance Corporation's annual report on the sector.

According to the report, the sector's debt will rise by 33,800 crore in 2021-22, which is 60% less than the previous fiscal year's increase of 85,500 crore. Following tariff increases, loan takeover by state governments, and improvements in subsidy disbursement and bill collections, the sector's financial deficit was nearly halved in 2021-22 compared to 2019-20.

The financial deficit is an important indicator of the sector's financial health. The deficit was calculated on a cash-adjusted basis, with the emphasis on capturing cash flows rather than revenue accrued. Due to the impact of Covid-19, it compared 2021-22 performance to the previous two fiscals.

Power distribution companies' aggregate technical and commercial losses fell 5 percentage points to 16.5% in 2021-22 from 2020-21 and 3.4 percentage points from the previous year. According to the report, capital expenditure addition fell to 48,000 crore in FY22, compared to 59,000 crore the previous year and 83,000 crore in 2019-20.

The sector needs to actively focus on upgrading its billing infrastructure for long-term gains, it said. Subsidy disbursement by state governments was 102% of the amount booked in 2021-22, compared with 85% a year earlier and 95% in 2019-20.

Also Read
Adani Ports ends FY23 with 9 pc growth
AEM technologies supplies pressurizer for Kudankulam Nuclear project

The total debt of India's power distribution sector increased by 24% from 2019-20 to 6.20 lakh crore in 2021-22. However, the rate of debt addition has slowed over the last two years, according to Power Finance Corporation's annual report on the sector. According to the report, the sector's debt will rise by 33,800 crore in 2021-22, which is 60% less than the previous fiscal year's increase of 85,500 crore. Following tariff increases, loan takeover by state governments, and improvements in subsidy disbursement and bill collections, the sector's financial deficit was nearly halved in 2021-22 compared to 2019-20. The financial deficit is an important indicator of the sector's financial health. The deficit was calculated on a cash-adjusted basis, with the emphasis on capturing cash flows rather than revenue accrued. Due to the impact of Covid-19, it compared 2021-22 performance to the previous two fiscals. Power distribution companies' aggregate technical and commercial losses fell 5 percentage points to 16.5% in 2021-22 from 2020-21 and 3.4 percentage points from the previous year. According to the report, capital expenditure addition fell to 48,000 crore in FY22, compared to 59,000 crore the previous year and 83,000 crore in 2019-20. The sector needs to actively focus on upgrading its billing infrastructure for long-term gains, it said. Subsidy disbursement by state governments was 102% of the amount booked in 2021-22, compared with 85% a year earlier and 95% in 2019-20. Also Read Adani Ports ends FY23 with 9 pc growth AEM technologies supplies pressurizer for Kudankulam Nuclear project

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?